QUEENSLAND HOUSE PRICES UNLIKELY TO FALL SUDDENLY

The property market in southeast Queensland is steadily improving and all the latest data supports ongoing, consistent capital growth, the REIQ said today (13/10/15).

REIQ CEO Antonia Mercorella said sudden slumps were unlikely and any predictions of dramatic house price drops were nothing more than “crystal ball gazing”.

“The Brisbane median house price reached a new high of $610,000 in the June quarter following a trend of positive growth of around two percent since the June quarter of 2013,” Ms Mercorella said.

“Our data suggests that this trend will continue for the September quarter,” she said.

In Queensland, the average home loan is $319,328 compared with New South Wales’ average of $422,179 and Victoria’s average of $365,265, according to ABS data.

“In Queensland, the average proportion of family income used to repay a mortgage is 27.3 percent, compared with 35.5 percent in New South Wales and 32.1 percent in Victoria, according to REIA data.

“Household debt levels are just not comparable between Queensland and the southern states,” Ms Mercorella said.

“Our housing conditions are vastly different and our housing is far more affordable,” she said.

Predictions of house prices dropping are arguably based on conditions in Sydney where the average house price is around $1 million. In metropolitan Brisbane the median house price is $610,000 and in Greater Brisbane, the median house price is $479,000, according to the REIQ Queensland Market Monitor, June quarter report.

Future rate rises do need to be taken into account however it is clear from the data that Queensland homeowners, on average, are well placed to keep pace with this.

“The reality is that the Queensland property market is increasing in value, in small, steady increments.

“We are not seeing a boom and bust cycle here and it is clear that some observers are mistaking the Sydney and Melbourne markets as indicative of the rest of the country.

“The fact is, those two markets are outliers and in no way do they match the conditions in the rest of the country,” she said.